HELP Mortgage Decline due to financial association

sarah759365

I am hoping someone can help me.

My boyfriend is trying to buy a house and has applied for a mortgage 100% in his name. he has a credit rating marked as 'excellent' by experian and a 10% deposit.

He was told last week that Santander would approve his mortgage however yesterday was told they had now declined due to a 'financial association' with me. (I have a poor credit rating inc CCJ's in the past)

We don't have any joint financial accounts, the ONLY thing that is in both our names our the utility bills for the rented flat we currently share.

Is there any way around this? He has passed the affordability criteria and can pay the mortgage on his own, I don't see why I should have any effect on his application?

Dave_Ham

Santander are unlikely to re-consider. Try a different lender.

If the deposit is coming from you, even in part this will be the issue..

Good luck

sarah759365

Thanks Dave, none of the deposit is coming from me.

kingstreet

Did you apply for a joint account of any kind, or a mortgage agreement in principle in joint names?

You need to get your credit files and try to sever the association before you try again.

sarah759365

No we've never applied for anything in a joint name, and no mortgage enquiries or applications have ever mentioned me.

We've had a look on his credit report and his assocation with me says;
'confirmed by Marks and Spencer Money'

The only product we have from there is contents insurance. Could this be it? And if so if I remove myself from the insurance will this rectify the problem?

kingstreet

If your details were given at the time of the insurance application, that has created the association.

You need to remove yourself from the policy and obtain disassociation forms from the CRAs to sever your association on your credit files.

sarah759365

thank you we'll do this. Do you know how long it takes to sever the association?

kingstreet

No. One to ask the CRAs, I'm afraid.

Dave_Ham

If you have had an offer accepted, you will be quicker/easier to go to another lender.

Many will not go into this level of detail and so long as deposit is his, you can be named as living at the property...

kingstreet

It's true.

The problem may not recur with another lender, but as this can't be guaranteed I'd go the disassociation route if there's enough time.

sarah759365

Thanks both, you've been far more useful than our broker!

the offer has been accepted on a new build and he is supposed to exchange in the next 4 weeks so time is a factor but concerned about affecting his credit score by applying elsewhere.